Rice Farming in Nigeria Now Costs Up to N2.3 Million Per Hectare, FG Reveals

Cultivating one hectare of rice in Nigeria now costs between N2.2 million and N2.3 million, with fertiliser alone swallowing about 35 percent of that money. The figure was disclosed on Tuesday, September 23, 2026, at a technical consultation on the rice value chain organised by the Presidential Food Systems Coordinating Unit (PFSCU).

The meeting drew government agencies, rice-producing states, farmers, processors, millers and industry associations to examine production costs, rice prices, stock levels, trade, financing and investment in the sector.

Fertiliser Takes 35% of Production Cost

In a statement signed by Marion Moon, executive secretary of the PFSCU, the government put the cost of cultivating a hectare of rice at N2.2 million to N2.3 million. Fertiliser accounts for roughly 35 percent of that total, making it the single biggest expense for rice farmers.

"Rice production costs [was] reported at about N2.2 to N2.3 million per hectare and fertiliser accounting for approximately 35 percent of production costs," the statement said.

Stakeholders at the session listed high energy and irrigation costs, limited access to long-term financing, post-harvest losses and inadequate storage as other major problems dragging down the rice value chain. Those costs, they warned, could push up the price of locally produced rice as farmers and processors struggle to absorb rising input and operational expenses.

What Stakeholders Want Fixed

Participants called for more investment in irrigation infrastructure, including solar-powered water systems, to support rice production all year round. They also pushed for stronger financing and refinancing options for viable rice mills and processors, alongside more spending on storage and aggregation facilities.

According to the stakeholders, cutting production and logistics costs is critical to making Nigerian rice competitive and attracting fresh investment into the industry. They also asked for more predictable government decisions on trade and imports, arguing that such policies should take domestic rice production cycles into account.

Mohammed Auwalu, vice-president of the Rice Farmers Association of Nigeria (RIFAN), welcomed the consultation, saying closer coordination among farmers, processors, state governments and federal authorities would strengthen the industry.

Smuggling Risk From Price Gap

Stakeholders raised concerns over the persistent price differences between locally produced and imported rice. They said the gap could create incentives for rice smuggling, making it necessary for the government to pursue trade and import policies that balance consumer needs with the interests of local producers.

Separately, the Lagos State Government has begun training rice millers and regulatory agencies in fortified rice production to improve nutrition and expand the state's rice industry. The global fortified rice market is expected to grow to $38.4 billion by 2035, while Nigeria's rice consumption is projected to reach 8.6 million tonnes in 2025/26. Lagos is promoting Eko Fortified Rice as part of efforts to widen access to nutritious rice and strengthen the local value chain.

For Nigerian consumers and businesses, the N2.2 million to N2.3 million per hectare cost sets a floor under local rice prices. Unless fertiliser, energy, irrigation and logistics costs come down, millers and traders will keep passing those expenses to the market, and the gap with imported rice will stay wide enough to keep smugglers busy.